MiFID/EMIR & Basel3


Though first implemented in 2007, MiFID is currently undergoing changes with practitioners suggesting that some trading environments are very complex making its implementation more difficult. To overcome weaknesses, the EU Commission are attempting to make the playing-field more level by improving the regulation of financial instruments.

This course will look at the practical implementation issues along with proposed changes.

MiFID – the Markets in Financial Instruments Directive– is likely to apply over the next two years. Its implementation will significantly alter financial services regulation in the UK, how firms operate their businesses and the way they interact with their customers. Most FSA-regulated firms carrying on investment business are likely to be affected, whether or not that business falls within MiFID’s scope. Implementation is therefore a
major challenge, both for us and for industry. Preparing to meet the challenge cannot begin too soon. Significant
aspects of the MiFID package have yet tube agreed at European level. So we cannot be certain at this stage
about the final detail of the legislative requirements.


Course Contents:

  • European Market Infrastructure Regulation - overview
  • Impact on pension funds, investment funds, corporates and insurance companies
  • Definition of a derivative under EMIR
  • The Clearing Obligation
  • Risk management techniques
  • NFC's and rolling average positions
  • Clearing Thresholds
Basel 3
  • Introduction to new Basel requirements
  • Capital conservative buffer
  • Liquidity coverage ratios
  • New stable funding ratios
Liquidity Coverage Ratio
  • Definition of the LCR
  • Application issues for the LCR
  • Contractual Maturity Mismatch
  • Concentration of Funding
  • Extension of MiFID rules
  • Exemptions and Upgrades
  • Upgrades to the market structure framework;
  • Corporate Governance and Investor Protection
  • Enhancement of the investor protection framework;
  • Amended sanctions powers; and
  • Trading in Emission allowances
Objective of MiFID
  • Single Passports - Barriers to Entry Removed.
  • Reduced Regulatory Bureaucracy - Generally firms must only answer to home regulator
  • Principle v Rule Based – Can cope with complexity
  • Information Sharing – Regulation more Effective